Efficiency of the Pay -As -You -Eat cafeteria system of income generation activity in supplementing educational costs in Kenyatta University

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The Kenya Government financial allocations to state universities are not adequate to meet the running costs of the institutions. Maximum utilisation of the existing resources within public universities would ease the financial burden facing the government and individuals investing in education. The Government of Kenya and the donors alike have been urging the public universities to use the existing resources more efficiently and to establish viable cost-reduction measures. Kenyatta University established the Pay-As-You-Eat (PAYE) cafeteria system of income generation to supplement the government finances for higher education. According to Jackson (1980) and Omuondo (1992) the university catering services had ran at a loss for some years and this called for the need to consider the cafeteria system with a view to enhancing efficiency. The purpose of the study was to identify factors responsible for inefficiency of the Pay-As-You -Eat cafeteria system in Kenyatta University. The specific objectives were: to examine the efficiency in the utilisation of resources, to analyse technology exploitation, the experience and adequacy of the labourforce in the PAYE cafeteria system of K.U. The study adopted the descriptive survey design. All the four restaurants in Kenyatta University main campus were studied. The variables of interest were the indicators of efficiency and profitability. Convenience sampling was used to gather information from the customers to the cafeterias. From a population of 1600 daily customers to the four cafeterias, a sample size of 80 respondents provided information on a questionnaire. Random sampling technique was applied to capture the workers in the 4 cafeterias. From a population of sixty workers, 30 respondents filled in questionnaires. All the four managers provided information through structured interviews. The researcher filled an observation schedule on the activities of the cafeterias. Financial documents were analysed to establish the financial position of the PAYE cafeteria system. Reliability of the questionnaire was determined by piloting. Data collected were recorded, coded and analysed using the Statistical Package for Social Sciences. Data were presented using frequency tables, piecharts, graphs and description. Findings of the study established that there was inefficiency in the cafeteria system due to poor services power wastages, mediocre technology, lack of specialisation and unqualified staff to run the restaurants. The study recommended that the restaurants be privatised, staff be held accountable for any damages, specialisation of duties for staff, exploitation of technology and the employment of qualified personnel.